M/S.Mahalakshmi Infra Contract v. The Assistant Commissioner(Ct)
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 14.06.2016
CORAM
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM W.P.No.19972 of 2016 & WMP Nos.17219 & 17220 of 2016 M/s Mahalakshmi Infra Contract Pvt. Ltd., rep. By its Authorised Signatory-Jayanthi Bai Patel .. Petitioner Vs 1 The Assistant Commissioner (CT) Cuddalore Taluk Circle Cuddalore, Cuddalore District.
2 The Deputy Commercial Tax Officer Checkpost Officer Pitchanur, Coimbatore 641 105 Coimbatore District.
.. Respondents Prayer: The Writ Petition is filed under Article 226 of the Constitution of India, seeking for a Writ of certiorari to call for the records on the file of the second respondent in his impugned proceedings in GDR No.229/2016-2017 dated 29.05.2016 quash the same as illegal and against the provisions of the Act. For Petitioner : Mrs.R.Hemalatha For Respondents : Mr.Manokaran Sundaram Addl. Government Pleader
O R D E R
Heard Mrs.R.Hemalatha , learned Counsel appearing for the petitioner and Mr.Manokaran Sundaram, learned Additional Government Pleader accepting notice on behalf of the respondents and with the consent of learned counsel appearing on either side, this writ petition is taken up for final disposal. 2.The petitioner is a Contractor and an assesee on the file of the first respondent and registered dealer under the provisions of the Tamil Nadu Value Added Tax, 2006 (TNVAT Act) and Central Sales tax, 1956 (CST Act). The challenge in this
Writ Petition is to a Goods Detention Notice issued to the petitioner dated 29.05.2016. The reason assigned in the impugned notice is that on verification of the dealer's details in the Department Website, it revealed that the consignee does not file CST returns for the year 2015-16.
3.The correctness of the similar order was decided by this Court in the case of RAJ GLASS & PLYWOODS & ANR V. THE ASSISTANT COMMISSIONER (CT), OPPANAKARA STREET ASSESSMENT CIRCLE, COIMBATORE & ORS [W.P.Nos. 18409 & 18410 of 2015]. The Court after elaborately considering all the issues and taking note of the Circular issued by the Principal Secretary/Commissioner of Commercial Taxes, dated 17.07.2014, held that the goods cannot be detained for the reason that the consignee has not filed his returns. Further, it is not the case of the second respondent therein that the goods were not accompanied by valid transport documents and the only reason assigned is that the consignee has not filed returns under the CST Act. Under such circumstances, the Court held as follows:
"7. A mere reading of the above rule also says that the officers of Commercial Taxes Department not below the rank of Deputy Commercial Tax Officer shall be the officer prescribed for the purposes of Sections 65, 66, 67, 68 and 69. Although this may be so, the Circular No.33/2014 Q4/7752/2014 dated 17.7.2014 issued by the Principal Secretary/Commissioner of Commercial Taxes, Chennai clearly shows that the movement of goods, if accompanied with a valid invoice, would satisfy the provisions of Section 68 of the TNVAT Act, hence, there is no offence falling under Section 71(5)(a) of the TNVAT Act. Further, when Rule 15(1) totally excludes the operation of Section 72(1)(a) of the TNVAT Act and also for the reason that the movement of goods were accompanied with valid invoices as per Section 68 of the TNVAT Act, the impugned goods detention notices issued by the second respondent in both the writ petitions are liable to be set aside.
Accordingly, the impugned orders are set aside and the respondents are directed to release the goods forthwith to the petitioners on production of a copy of this order. The writ petitions are allowed. Consequently, M.P.Nos.1 & 2 of 2015 are closed. No costs."
4.The above decision is squarely covers the issue on hand and the factual and legal position is not disputed by the learned Additional Government Pleader appearing for the respondents.
5.In the light of the above, following the decision of this Court in the case of RAJ GLASS & PLYWOODS (supra) and taking note of the Circular issued by the Commissioner of Commercial Tax dated 17.07.2014, the Writ Petition is allowed and the impugned notice is quashed and the second respondent is directed to forthwith release the consignment.
The Writ Petition is disposed of accordingly. No costs. Consequently, connected Miscellaneous Petitions are closed. Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar To 1 The Assistant Commissioner (CT) Cuddalore Taluk Circle Cuddalore, Cuddalore District.
2 The Deputy Commercial Tax Officer Checkpost Officer Pitchanur, Coimbatore 641 105 Coimbatore District.
+1cc to the Special Government Pleader Sr. Sr.32016 +1cc to M/S.R.Hemalatha, Advocate sr.31993 W.P.No. 19972 of 2016 ctk[co] srg 15/06/2016